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Buy Shree Cements; target of Rs 31,200: Emkay Global Financial

Emkay Global Financial is bullish on Shree Cements has recommended buy rating on the stock with a target price of Rs 31,200 in its research report dated September 15, 2021.

September 15, 2021 / 01:53 PM IST
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Emkay Global Financial's report on Shree Cements

Shree Cement’s board has approved expansion plans to increase the company’s clinker capacity by 3.8mt and cement grinding capacity by 6.5mt. The board has also approved a proposal to set up 106MW solar capacity at a total capex of Rs48bn and it is likely to be commissioned by Mar’24. The expansion will increase the company’s domestic grinding capacity to 53mt from 43.4mt and is a part of its aim to achieve 80mt capacity by FY30 (7% CAGR). Our current forecasts imply a 9% capacity CAGR over FY21-26E and 6.5% thereafter.


We build in consolidated volume and EBITDA CAGRs of 12% and 14%, respectively, over FY21-24E. We have a Buy rating on the stock with a DCF-derived TP of Rs31,200 (Sep’22E), implying 18x 1-year forward EV/E.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Sep 15, 2021 01:53 pm

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